Tax Appeal Tribunal Rules in Favour of KRA in a Sh60 Million Case

by Lawyer Wanz

The Tax Appeal Tribunal has given the Kenya Revenue Authority, KRA the go-ahead to collect taxes amounting to Kshs 59.64 million from Muhungu Limited after battling the case for four years.

This follows the dismissal of the firm’s application to reinstate a tax appeal it made in January this year and which it later withdrew from tribunal.

The Tax Appeal Tribunal ruled that once an application has been withdrawn, it cannot be reinstated.

The ruling paves way for the taxman to enforce the collection of taxes that stood at Kshs. 59,640,304 at the time of filing of the Application for reinstatement of the Appeal on the 15th March 2016.

The authority had placed a caveat restriction on property owned by Muhugu Limited restricting its transfer by the time the application for reinstatement was made in a bid to recover the taxes.

The tax dispute started after KRA issued Agency Notices to Muhugu Limited’s bankers,   Kenya   Commercial   Bank   Limited to recover the taxes owing prompting Muhugu Limited to seek to reinstate an Appeal filed at the Local Committee in 2014 against KRA which was later withdrawn in 2016

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